Stamp Act 1949

This Act shall apply throughout Malaysia.

Interpretation

any person licensed under the Financial Services Act 2013

[Act 758] to carry on a banking business in Malaysia;

any person licensed under the Islamic Financial Services

Act 2013 [Act 759] to carry on an Islamic banking business in Malaysia; or

12 Laws of Malaysia ACT 378

a development financial institution prescribed under the Development Financial Institutions Act 2002 [Act 618];

“bond” means—

any instrument whereby a person obliges himself to pay money to another on condition that the obligation shall be void if a specified act is performed or is not performed, as the case may be;

any instrument, attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another;

“charge” means any instrument whereby, for the purpose of securing the payment of any definite and certain sum of money advanced or lent at the time or previously due or foreborne to be paid or for the repayment of money to be thereafter lent, advanced or paid, or which may become due upon any account current, together with any sum already advanced or due, or without, as the case may be, or for the performance of any contract or engagement, one person creates a right over or charge upon any specified property; and includes any instrument which purports to create or in which any person agrees to create any such right or charge;

“cheque” means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand;

“Collector” includes the Collector of Stamp Duties and every Deputy

Collector of Stamp Duties appointed under section 3;

“continuation clause” in a policy of sea insurance made for time means an agreement to the following or the like effect, namely, that in the event of the ship being at sea or the voyage otherwise not completed on the expiration of the policy, the subject matter of the insurance shall be held covered until the arrival of the ship, or for a reasonable time thereafter not exceeding thirty days;

“contract note” means the note sent by a dealer or agent to his principal, or by any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or marketable

Stamp 13

securities, advising the principal, or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a dealer or agent to his principal where the principal is himself acting as dealer or agent for a principal and is himself a person who bona fide carries on the business of a dealer in Malaysia;

“conveyance on sale” includes every instrument and every decree or order of any Court, whereby any property, or any estate or interest in any property, upon the sale thereof is transferred to or vested in a purchaser or any other person on his behalf or by his direction;

“dealer”

means any person licensed under the

*Securities Industry Act 1983 [Act 280] to carry on the business of dealing in securities in Malaysia and is recognized as a member company by a stock exchange;

“die” includes any plate, type, tool or implement whatever used under the direction of the Collector for expressing or denoting any duty or rate of duty, or the fact that any duty or rate of duty or penalty has been paid, or that an instrument is duly stamped, or is not chargeable with any duty or for denoting any fee, and also any part of any such plate, type, tool or implement;

“duly stamped”, as applied to an instrument, means —

the instrument bears an adhesive or impressed stamp of not less than the proper amount or the amount of initial duty or the amount of advance duty paid under subsection 37(1) and that such stamp has been affixed or used in accordance with the law for the time being in force;

any official receipt for the proper amount or the amount of initial duty or the amount of advance duty is affixed to the instrument;

a stamp certificate for the proper amount or the amount of initial duty or the amount of advance duty is attached to the

*NOTE―The Securities Industry Act 1983 [Act 280] was repealed by the Capital Market and Services

Act 2007 [Act 671]—see section 381 of Act 671.

14 Laws of Malaysia ACT 378

instrument if the instrument is stamped through an electronic medium; or

the instrument is stamped by means of digital stamping for the proper amount or the amount of initial duty or the amount of advance duty;

“duty” means any stamp duty for the time being chargeable under this Act or under any written law;

“equitable mortgage” means an agreement or memorandum, under hand only, relating to the deposit of any title deeds or instruments constituting or being evidence of the title to any property whatever

(other than stock or marketable securities and a letter of hypothecation), or creating a charge on such property but does not include a registered charge on land in any State;

“executed” and “execution”, used with reference to instruments not under seal, mean “signed” and “signature”;

“foreign currency loan” means any loan denominated wholly in currencies other than the Ringgit;

“impressed stamp” means a stamp impressed by means of a die, or an adhesive stamp over which an impression, denoting the date of such impression, has been made by the proper officer by means of a die;

“instrument” includes every written document;

“insurer”

means any person licensed under the

*Takaful Act 1984 [Act 312] or the **Insurance Act 1996 [Act 553] to carry on an insurance business in Malaysia and includes a reinsurer;

“lease” means a lease of immovable property, and includes—

any undertaking in writing to cultivate, occupy, or pay or deliver rent for, immovable property;

*NOTE―The Takaful Act 1984 [Act 312] was repealed by the Islamic Financial Services Act 2013

[Act 759]—see section 282 of Act 759.

**NOTE―The Insurance Act 1996 [Act 553] was repealed by the Financial Services Act 2013

[Act 758]—see section 271 of Act 758.

Stamp 15

any instrument by which tolls, rents or profits of any description are let to farm;

any writing on an application for a lease intended to signify that the application is granted;

“letter of hypothecation” means any instrument creating a pledge or lien over goods in consideration of monies advanced or to be advanced or to secure the payment or repayment of monies;

“marketable security” means a security of such a description as to be capable of being sold or negotiated in any stock market in Malaysia or elsewhere;

“money” includes all sums whether expressed in the ringgit or in any other currency;

“mortgage” means a security by way of mortgage for the payment of any definite and certain sum of money advanced or lent at the time, or previously due or foreborne to be paid, being payable, or for the repayment of money to be thereafter lent, advanced or paid, or which may become due upon an account current, together with any sum already advanced or due, or without, as the case may be; and includes—

any conveyance of any property in trust to be sold or otherwise converted into money intended only as a security, and redeemable before the sale or other disposal thereof either by express stipulation or otherwise;

any instrument in writing for defeating or making redeemable, or explaining or qualifying any conveyance of property, apparently absolute, but intended only as a security;

any agreement for a mortgage or any agreement (other than an agreement chargeable with duty as an equitable mortgage), contract, or bond accompanied with a deposit of title deeds or with other instruments evidencing a right to property, for making a mortgage or any other security or conveyance as aforesaid of any property comprised in the title deeds or other instruments or for pledging or charging the same as a security; and

16 Laws of Malaysia ACT 378

any deed operating as a mortgage of any stock or marketable security;

“official receipt” means a receipt issued by or on behalf of the

Collector for payment of stamp duties;

“paper” includes every material upon which words or figures can be expressed;

“policy of insurance” includes every writing whereby any contract of insurance is made or agreed to be made or is evidenced, and the expression “insurance” includes assurance;

“policy of sea insurance”—

means any insurance, including re-insurance, made upon any ship or vessel, whether for marine or inland navigation, or upon the machinery, tackle or furniture of any ship or vessel or upon any goods, merchandise or property of any description whatever on board of any ship or vessel or upon the freight of or any other interest which may be lawfully insured in or relating to any ship or vessel; and

includes any insurance of goods, merchandise or property for any transit which includes, not only a sea risk under paragraph (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance;

“power of attorney” means any instrument except a warrant to act as a solicitor in any judicial proceeding, empowering a specified person to act in the stead of the person executing it;

“promissory note” means any document or writing (except a bank note) containing a promise to pay any sum of money and includes a note promising the payment of any sum of money out of any particular fund which may or may not be available or upon any condition or contingency which may or may not be performed or happen;

“property” includes movable or immovable property and any estate or interest in any property movable or immovable, whether in

Stamp 17

possession, reversion, remainder or contingency, and any debt, and anything in action, and any other right or interest in the nature of property which is capable of being disposed of and has a value in it;

“residential property” means a house, condominium, apartment, flat, service apartment or small office home office solely to be used as a dwelling house;

“settlement” means any non-testamentary disposition in writing whether made voluntarily or upon a good or valuable consideration other than a bona fide pecuniary consideration whereby any definite and certain property is settled or agreed to be settled in any manner for any purpose whatsoever;

“small and medium enterprise” means—

in relation to the manufacturing activities, an enterprise with sales turnover not exceeding fifty million ringgit or full-time employees not exceeding two hundred people; or

in relation to the services, and other sectors, an enterprise with sales turnover not exceeding twenty million ringgit or full-time employees not exceeding seventy-five people;

“stamp certificate” means a certificate that is issued electronically in respect of any instrument chargeable with duty denoting the amount of duty paid in respect of that instrument;

“stock” includes any share in the capital stock or funded debt of any corporation, company or society in Malaysia or elsewhere and any share in the stocks or funds of the Government of Malaysia or of any other Government or country;

“writing” or “written” includes any handwriting, typewriting, printing, electronic record or transmission which is in an electronically readable form.

18 Laws of Malaysia ACT 378

The Minister of Finance may, by notification in the Gazette, appoint such number of Deputy Collectors of Stamp Duties as he thinks fit, for the purpose of carrying out the provisions of this Act.

to deliver to the Collector for examination any instrument, book, account, record or other document within the time specified in the notice; or

to attend personally before the Collector and produce for examination any instrument, book, account, record or other document.

The Collector shall, if he considers it necessary in the execution of his duties under this Act, at all times have full and free access to all lands, buildings and places, and all instruments, books, accounts, records, documents, objects, articles, materials and things, whether in the custody or under the control of a public officer or a body corporate or any other person whatsoever, for the purpose of ascertaining the market value of any property or of ascertaining any facts or inspecting any instrument, book, account, record, document, object, article, material or thing which the Collector considers necessary or relevant for the purposes of this Act, or considers likely to provide any information otherwise required for the purposes of this Act.

The Collector may, when entering any land, building or place pursuant to subsection (2)—

Stamp 19

Where the Collector exercises his powers under subsections (2)

and (2A), the owners or occupiers of such lands, buildings and places shall provide the Collector with reasonable facilities and assistance for the performance of his duties under this Act.

The Collector may take possession of any such instruments, books, accounts, records, documents, objects, articles, materials or things where in his opinion—

Where in the opinion of the Collector it is necessary for the purpose of ascertaining the duty payable on an instrument to examine any instrument, book, account, record or other document kept otherwise than in the national language, the Collector may by notice in writing require any person to furnish within a time specified in the notice (not being less than thirty days from the date of service of the notice) a translation in the national language of the instrument, book, account, record or other document in question:

20 Laws of Malaysia ACT 378

Provided that in East Malaysia this subsection shall have effect as if the words “or English language” were inserted after the words

“national language” wherever they occur.

For the purpose only of ascertaining the market value of any property, the Collector may in writing authorize any valuer employed by the Government, whether he be a public officer or a person privately practising as a valuer, to exercise any of the powers conferred upon the

Collector by this section.

Any person who—

; or

Nothing in this Act shall render liable to additional duty any instrument whereon duty is expressly imposed under any other written law in force in Malaysia.

Where in the case of any sale, lease, charge, settlement, exchange or partition several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in the First Schedule for the conveyance, lease, charge, settlement or partition and each of the other instruments shall be chargeable with a duty of ten ringgit only; and the parties may determine for themselves which of the instruments so employed shall, for the purpose of this subsection, be deemed to be the principal instrument.

The duties imposed by such Schedule may be cancelled, varied or added to by a resolution of the House of Representatives.

Stamp duty on instruments executed outside Malaysia effecting transfers of property in Malaysia

Where any instrument executed outside Malaysia and purporting to effect a transfer of debentures issued by, or shares in, a company incorporated in Malaysia under section 16 of the

*Companies Act 1965 [Act 125] or a foreign company registered in

Malaysia under section 332 of that Act is produced or delivered to the company for registration, in the case of a company incorporated in

Malaysia, in a register of debenture holders or a register of members of the company kept in Malaysia in pursuance of section 70 or 158 of that Act or, in the case of a foreign company, in a branch register of the foreign company kept in Malaysia in pursuance of section 342 of that Act, the company or foreign company shall, unless the instrument of transfer bears a stamp, duly cancelled in accordance with this Act, showing—

Where any instrument of transfer of any of the descriptions mentioned in subsection (2) is registered otherwise than in accordance with that subsection, the company or foreign company and the officer of the company or foreign company responsible for making the entry in the register shall be liable to a fine **of not less than one thousand ringgit and not exceeding ten thousand ringgit.

In this section—

*NOTE—The Companies Act 1965 [Act 125] has been repealed by the Companies Act 2016 [Act 777]

—see section 620 of Act 777.

**NOTE—Previously “not exceeding two hundred and fifty ringgit”–see section 15 of Measures for the

Collection, Administration and Enforcement of Tax Act 2025 [Act 875].

Stamp 23

an instrument containing or relating to several distinct matters shall be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of the matters;

an instrument made for any consideration in respect of which it is chargeable with ad valorem duty, and also for any further or other valuable consideration or considerations, shall be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of the considerations.

*NOTE—This Act has been repealed by Companies Act 2016 [Act 777]—see subsection 620(1) of Act 777.

24 Laws of Malaysia ACT 378

(Deleted by Act 851).

(aa) (Deleted by Act 851).

affixing an official receipt to such instrument;

attaching a stamp certificate to such instrument; or

means of digital stamping.

–

The said authorized persons shall levy upon charge to the person to whom such instruments referred to in subsection (1) are issued the stamp duty mentioned in the First Schedule.

The said authorized person shall pay on the 1st day of each calendar month in each year to the Collector the amount due and collected thereon as duties on such unstamped instruments and where he fails to pay the amount on each date specified or within fourteen days immediately thereafter, he shall in addition to the amount due pay a

Stamp 25

further amount of *five hundred ringgit or twenty per centum of the amount due whichever is the greater and any amount due shall be recoverable as a debt due to the Government.

The said authorized person shall deposit with the Collector, as security for the due payment to the Collector of any moneys payable under subsection (2), such sum, if any, as the Minister of

Finance may direct.

Instruments in respect of which payment of duty by way of composition has been made under this section, notwithstanding any other provision of this Act, shall be deemed to be duly stamped.

Where any person has been authorized to compound for the payment of duty on unstamped instrument under subsection (1), the

Collector or any person authorized by him in writing, may, at all reasonable times, inspect any stocks of unstamped instrument held by such person and any books, records and documents kept by him in connection with the issue of such instrument.

For the purpose of subsection (6), the person mentioned in subsection (1) shall keep and retain the books, records and documents in connection with the issue of such instruments referred to in subsection (1) or a period of seven years from the year in which such instruments are issued.

If more than one instrument be written upon the same piece of paper, every one of the instruments shall be separately and distinctly stamped with the duty with which it is chargeable.

*NOTE—Previously “two hundred ringgit or ten per centum”–see section 16 of Measures for the

Collection, Administration and Enforcement of Tax Act 2025 [Act 875].

26 Laws of Malaysia ACT 378

For the purpose of subsection (1), the Collector shall indorse on the replicate of the instrument that full and proper duty with which the original is chargeable had been paid upon payment of a fee of one hundred ringgit for each replicate of an instrument.

it is stamped as an original instrument;

it appears by a certificate indorsed by the Collector on the duplicate or counterpart that full and proper duty has been paid on the original instrument;

Stamp 27

there is denoted on the stamp certificate issued for the duplicate or counterpart that payment of the stamp duty has been paid in respect of the original instrument; or

there is denoted by means of digital stamping on the duplicate or counterpart that full and proper duty has been paid in respect of the original instrument.

Valuation for Duty

in the case of a settlement or gift, the date of execution of the instrument of trust or settlement or gift;

in the case of a transfer implementing a sale under a duly stamped agreement of sale and purchase, the date of execution of that agreement;

in the case of a transfer of any property granted by a statutory body, a local authority or any co-operative society registered under any laws relating to co-operative societies, the date when the final terms of transfer had been communicated to the transferee, and in the case of subsequent resale of that property, the date of consent by the statutory body or local authority or the board of the co-operative society for that resale;

in the case of a transfer under a duly stamped sale and purchase agreement where financial arrangements have been made in accordance with the Syariah, the date of execution of agreement; or

in any other case, the date of execution of the instrument of transfer.

28 Laws of Malaysia ACT 378

any money expressed in any currency other than ringgit;

any stock or marketable or other security, the duty shall be calculated on the value, on the day of the date of the instrument or on the day it is stamped if executed out of Malaysia, of the money in ringgit according to the current rate of exchange, or of the stock or security according to the average price thereof or, if there be no price, according to the value thereof.

Where an instrument contains a statement of current rate of exchange or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject matter of such statement, be presumed, until the contrary is proved, to be duly stamped.

that a company with limited liability has been registered within six months before the commencement of this Act, or that a company with limited liability is to be registered, or that since the commencement of this Act a company has been incorporated by special written law, or that since the commencement of this Act or within six months before the commencement thereof the issued share capital of a company has been increased;

that the company (in this section referred to as “the transferee company”) is to be registered in Malaysia or has been incorporated in Malaysia or has increased its capital with a view to the acquisition either of the undertaking of, or of not less than ninety per centum of the issued share capital of, any particular existing company;

that the consideration for the acquisition (except such part thereof as consists in the transfer to or discharge by the transferee company of liabilities of the existing company)

consists as to not less than ninety per centum thereof—

where an undertaking is to be acquired, in the issue of shares in the transferee company to the existing company or to holders of shares in the existing company; or

no such instrument shall be deemed to be duly stamped unless—

the instrument is stamped with the duty to which it would but for this section be liable; or

in the case of an instrument made for the purposes of or in connection with a transfer to a company within the meaning of the *Companies Act 1965 the provisions of this subsection shall not apply unless the instrument is either—

executed within a period of twelve months from the date of the registration of the transferee company or the date of the resolution for the increase of the issued share capital of the transferee company, as the case may be; or

(Deleted by Act 851).

A company shall not be deemed to be a particular existing company within the meaning of this section unless it is provided by the memorandum of association of, or written law incorporating, the transferee company that one of the objects for which the company is established is the acquisition of the undertaking of, or shares in, the existing company, or unless it appears from the resolution, or other authority for the increase of the capital of the transferee company that the increase is authorized for the purpose of acquiring the undertaking of, or shares in, the existing company.

Where a claim is made for exemption under this section, the

Collector may require the delivery to him of a statutory declaration in such form as he may direct made by an advocate and solicitor, or, in the case of Sabah and Sarawak, an advocate, of the High Court, and of such further evidence, if any, as he deems necessary.

If—

If in the case of any scheme of reconstruction or amalgamation, the Collector is satisfied that at the proper time for making a claim for exemption from duty under subsection (1) there were in existence all the necessary conditions for such exemption other than the condition that not less than ninety per centum of the issued share capital of the existing company would be acquired by the transferee company, the

Collector may, if it is proved to his satisfaction that not less than ninety per centum of the issued capital of the existing company has under the scheme been acquired within a period of six months from the earlier of the two following dates, that is to say—

Where any claim for exemption from duty under this section has been allowed and any of the circumstances specified under

Stamp 33

subsection (5) occurs, each company which was a party to the instrument shall notify the Collector of the circumstances of the occurrence within thirty days from the date of the occurrence.

In this section, unless the context otherwise requires—

the instrument is stamped with the duty to which it would but for this section be liable; or

a return is furnished together with the instrument to the

Collector in accordance with section 35A, and the instrument is assessed under paragraph 36(1)(b) and the

Collector has certified under section 37 either that the full duty with which the instrument is chargeable has been paid, or that the instrument is not chargeable with duty.

This section applies to any instrument with respect to which it is shown to the satisfaction of the Collector—

34 Laws of Malaysia ACT 378

The ownership referred to in subsection (2) is ownership either directly or through another company or other companies, or partly directly and partly through another company or other companies, and the Sixth Schedule shall apply for the purposes of this section.

This section shall not apply to any instrument unless it is also shown to the satisfaction of the Collector that the instrument was not executed in pursuance of or in connection with an arrangement under which—

Where any claim for exemption from duty under this section has been allowed, it is subsequently found that any declaration or other evidence furnished in support of the claim is untrue, the exemption from duty shall be revoked and duty shall be chargeable, together with interest thereon at the rate of six per centum per annum, from the date on which the duty which the conveyance or transfer ought to be stamped with the proper amount of duty.

Where any claim for exemption from duty under this section has been allowed and any of the circumstances specified under subsection (4) occurs, each company which was a party to the instrument shall notify the Collector in writing of the circumstances of the occurrence within thirty days from the date of the occurrence.

Where a claim is made for exemption under this section, the Collector may require the delivery to him of a statutory declaration in such form as he may direct made by an advocate and solicitor, or, in the case of Sabah and Sarawak, an advocate, of the High Court, and of such further evidence, if any, as he deems necessary.

36 Laws of Malaysia ACT 378

The Collector may be required to express his opinion under section 36 on any conveyance or transfer operating as a voluntary disposition inter vivos, and no such conveyance or transfer shall be deemed to be duly stamped unless the Collector has expressed his opinion thereon in accordance with that section.

Any conveyance or transfer, not being a disposition made in favour of a purchaser or incumbrancer or other person in good faith and for valuable consideration, shall, for the purposes of this section, be deemed to be a conveyance or transfer operating as a voluntary disposition inter vivos, and (except where marriage is the consideration) the consideration for any conveyance or transfer shall not for this purpose be deemed to be valuable consideration where by reason of the inadequacy of the sum paid as consideration or other circumstances the conveyance or transfer confers a substantial benefit on the person to whom the property is conveyed or transferred.

A conveyance or transfer made for nominal consideration for the purpose of securing the repayment of an advance or loan or made for effectuating the appointment of a new trustee or the retirement of a trustee, whether the trust is expressed or implied, or under which no beneficial interest passes in the property conveyed or transferred, or made to a beneficiary by a trustee or other person in a fiduciary capacity under any trust, whether expressed or implied, shall not be charged with duty under this section, and this subsection shall have effect notwithstanding that the circumstances exempting the conveyance or transfer from charge under this section are not set forth in the conveyance or transfer.

How transfer for debts, stocks, securities, future payments and further consideration to be charged

in consideration, wholly or in part, of any debt or of any stock or marketable security; or

subject, either certainly or contingently, to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not, the instrument of transfer shall be chargeable with ad valorem duty calculated at the rates specified under Item 32(a), (aa) or (ab) in the

First Schedule upon either the value of the debt, stock or marketable security, as the case may be, or the market value of the property as on the date of execution, whichever be the greater.

Where the consideration, or any part of the consideration, for a transfer of property consists of any security other than a marketable security, the instrument of transfer shall be chargeable with ad valorem duty calculated at the rates specified under Item 32(a), (aa) or (ab) in the

First Schedule upon either the amount due upon the security for principal and interest or, in the case of a security given under a scheme of financing made according to the syariah, any sum due and payable in addition to the principal, or upon the market value of the property as on the date of execution, whichever be the greater.

A conveyance on sale made for any consideration in respect whereof it is chargeable with ad valorem duty, and in further consideration of a covenant by the purchaser to make, or of his having previously made, any substantial improvement of or addition to the property transferred to him or of any covenant relating to the subject-matter of the transfer, is not chargeable, and shall be deemed not to have been chargeable, with any duty in respect of such further consideration.

the ad valorem stamp duty upon any such decree or order shall not exceed the duty on a sum equal to the value of the property to which the decree or order relates, and where the decree or order states that value such statement shall be conclusive for the purpose of determining the amount of the duty; and

where ad valorem stamp duty is paid upon such decree or order, any conveyance following upon such decree or order shall be exempt from the ad valorem stamp duty.

Where the consideration, or any part of the consideration, for a conveyance on sale consists of money payable periodically for a definite period exceeding twenty years or in perpetuity, or for any indefinite period not terminable with life, the conveyance is to be charged in respect of that consideration with ad valorem duty on the total amount which will or may, according to the terms of sale, be payable during the period of twenty years next after the day of the date of the instrument.

Where the consideration, or any part of the consideration, for a conveyance on sale consists of money payable periodically during any life or lives, the conveyance shall be charged in respect of that consideration with ad valorem duty on the amount which will or may, according to the terms of sale, be payable during the period of twelve years next after the day of the date of the instrument.

No conveyance on sale chargeable with ad valorem duty in respect of any periodical payments, and containing also provision for

Stamp 39

securing the payments, shall be charged with any duty in respect of such provision, and no separate instrument made in that case for securing the payments is to be charged with any higher duty than ten ringgit.

Where property contracted to be purchased for one consideration for the whole by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts or parcels by separate instruments to the person by or for whom the same was purchased for distinct parts of the consideration, the conveyance for each separate part or parcel shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.

Where a person having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable with ad valorem duty in respect of the consideration moving from the sub-purchaser.

Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the property is in consequence conveyed by the original seller to different persons in parts or parcels, the conveyance of each part or parcel sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration moving from the sub-purchaser thereof, without regard to the amount or value of the original consideration; and the conveyance of the residue, if any, of such

40 Laws of Malaysia ACT 378

property to the original purchaser shall be chargeable with ad valorem duty in the manner specified by section 12A, and Item 32(a), (aa) or

(ab) of the First Schedule.

Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration moving from him and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or where such duty would exceed ten ringgit with a duty of ten ringgit.

the principal or only instrument whereby the exchange or partition or division is affected is to be charged with ad valorem duty as if it were a conveyance on sale; and

where in any such case there are several instruments for completing the title of either party, the principal instrument is to be ascertained and the other instruments are to be charged, with duty in the manner hereinbefore provided in the case of several instruments of conveyance.

Notwithstanding subsection (1), where an instrument is chargeable with a duty in respect of an exchange of any real property for any real property or upon the partition or division of any real property, and no consideration is paid or given, or agreed to be paid or given, the instrument shall be chargeable with the duty of ten ringgit only if—

Where the transaction effected by the instrument forms part of a larger transaction or series of transactions, ad valorem duty upon that instrument and upon any other instrument following shall be calculated on the aggregate of the consideration or market values of the separate parts or parcels being conveyed, whichever is the higher, at the rates specified under Item 32(a), (aa) or (ab) of the First Schedule.

Where the purchaser has paid the said ad valorem duty and, before having obtained conveyance or transfer of the property, enters into a contract or agreement for the sale of the same, the contract or agreement shall be charged, if the consideration for that sale is in excess of the consideration for the original sale, with the ad valorem duty payable in respect of such excess consideration, and in any other case with the fixed duty of ten ringgit.

Where duty has been duly paid in conformity with the foregoing provisions, the conveyance or transfer made to the purchaser or sub-purchaser, or any other person on his behalf or by his direction, shall not be chargeable with any duty, and the Collector, upon application, either shall denote the payment of the ad valorem duty upon the conveyance or transfer or shall transfer the ad valorem duty thereto upon production of the contract or agreement, or contracts or agreements, duly stamped.

–

(6)

(Deleted by Act A723).

The ad valorem duty paid upon any such contract or agreement shall be returned by the Collector, on an application made within twenty-four months after the date of instrument by the person whom it was first or alone executed, in case the contract or agreement be afterwards rescinded or annulled, or for any other reason be not substantially performed or carried into effect, so as to operate as or be followed by a conveyance or transfer.

Where it is stipulated that the value of the produce or goods is to amount at least to, or is not to exceed, a given sum, or where the lessee is specially charged with, or has the option of paying after any permanent rate of conversion, the value of the produce or goods shall, for the purpose of assessing the ad valorem duty, be estimated at the given sum, or according to such permanent rate.

A lease or agreement for a lease made either wholly or partially for any such consideration, if it contains a statement of the value thereof and is stamped in accordance with the statement, shall, so far as regards the subject matter of the statement, be deemed duly stamped, unless or until it is otherwise shown that the statement is incorrect, and that the lease or agreement is in fact not duly stamped.

A lease made for any consideration in respect whereof it is chargeable with ad valorem duty, and in further consideration either of a covenant by the lessee to make, or of his having previously made, any substantial improvement of or addition to the property demised to him, or of any covenant relating to the matter of the lease, shall not be charged with any duty in respect of such further consideration, except where such further consideration consists of a covenant which if it were contained in a separate deed would be chargeable with ad valorem duty.

An instrument whereby the rent reserved by any other instrument chargeable with duty and duly stamped as a lease is increased shall not be charged with duty otherwise than as a lease in consideration of the additional rent thereby made payable.

A security for the payment of any rent charge, annuity or periodical payments by way of repayment, or in satisfaction or discharge of any loan, advance or payment intended to be so repaid, satisfied or discharged, shall be charged with the same duty as a similar security for the payment of the sum of money so lent, advanced or paid.

A transfer of a duly stamped security, and a security by way of further charge for money or stock, added to money or stock previously secured by a duly stamped instrument, shall not be charged with any duty by reason of its containing any further or additional security for the money or stock transferred or previously secured, or the interest or dividends thereof, or any new covenant, proviso, power, stipulation or agreement in relation thereto, or any further assurance of the property comprised in the transferred or previous security.

Stamp 45

An instrument chargeable with ad valorem duty as a mortgage shall not be charged with any further duty by reason of the equity of redemption in the mortgaged property being thereby conveyed or limited in any other manner than to a purchaser, or in trust for, or according to the direction of, a purchaser.

Where such total amount is unlimited, the security is to be available for such an amount only as the ad valorem duty stamped thereon extends to cover; but where any advance or loan is made in excess of the amount covered by that duty the security shall for the purpose of stamp duty be deemed to be a new and separate instrument bearing date on the day on which the advance or loan is made.

No money to be advanced for the insurance of any property comprised in the security against damage by fire, or for keeping up any policy of life insurance comprised in the security, or for effecting in lieu thereof any new policy, shall be reckoned as forming part of the amount in respect whereof the security is chargeable with ad valorem duty.

No policy of sea insurance made for time shall be made for any time exceeding twelve months.

No policy of sea insurance shall be valid unless it specifies the particular risk or adventure or the time for which it is made, the names of the subscribers or underwriters, and the amount or amounts insured.

Where any sea insurance is made for or upon a voyage and also for time, or to extend to or cover any time beyond thirty days after the ship shall have arrived at her destination and been there moored at anchor, the policy shall be charged with duty as a policy for or upon a voyage and also with duty as a policy for time.

Notwithstanding anything contained in this section, a policy of sea insurance made for time may contain a continuation clause, and such a policy shall not be invalid on the ground only that by reason of the continuation clause it may become available for a period exceeding twelve months.

There shall be charged on a policy of sea insurance containing a continuation clause the stamp duty mentioned in the First Schedule in addition to the stamp duty which is otherwise chargeable on the policy.

Stamp 47

If the risk covered by the continuation clause attaches and a new policy is not issued covering the risk, the continuation clause shall be deemed to be a new and separate contract of sea insurance expressed in the policy in which it is contained, but not covered by the stamp thereon, and the policy shall be stamped in respect of that contract accordingly, but may be so stamped without penalty at any time not exceeding thirty days after the risk has so attached.

Where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage such agreement or engagement shall be deemed to be a contract for sea insurance.

the alteration is made before notice of the determination of the risk originally insured;

it does not prolong the time covered by the insurance thereby made beyond the period of six months in the case of a policy made for a less period than six months, or beyond the period of twelve months in the case of a policy made for a greater period than six months;

the articles insured remain the property of the same person or persons; and

no additional or further sum is insured by reason or means of the alteration.

48 Laws of Malaysia ACT 378

Where a contract note advises the sale or purchase of more than one description of stock or marketable security, the note shall be deemed to be as many contract notes as they are descriptions of stocks or securities sold or purchased.

deals or holds himself out as dealing as a principal in any stock or marketable security; and

buys or sells any stock or marketable security, shall forthwith make and execute a contract note, and transmit the note to his principal, or to the vendor or purchaser of the stock or marketable security, as the case may be.

No dealer, agent or other person shall have any legal claim to any charge for brokerage, commission or agency with reference to the sale or purchase of any stock or marketable security if he fails to comply with this section.

Stamp 49

in the case of the instruments described in the first column of the Third Schedule, by the person mentioned in the second column of such Schedule;

in the case of every other instrument, by the person drawing, making or executing such instrument.

For the purposes of this section, a return shall—

the Collector shall be deemed to have made an assessment of duty on the instrument based on the information furnished in the return; or

the Collector shall assess the duty on the instrument, if any, with which in his judgment an instrument is chargeable.

The Collector may determine the instruments falling under paragraph (1)(a) in any manner as the Collector thinks fit.

For the purposes of this Act, where—

For the purposes of paragraph (1)(b), the Collector may require any of the following:

The Collector may refuse to assess the duty under paragraph (1)(b) until such abstract, affidavit or other evidence has been furnished accordingly.

No evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an inquiry as to the duty with which the instrument to which it relates is chargeable.

52 Laws of Malaysia ACT 378

Every person by whom any such evidence is furnished shall, on payment of the full duty with which the instrument to which it relates is chargeable, be relieved from any penalty which he has incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.

The application made under subsection (1) shall contain particulars or evidence deemed necessary to prove the facts affecting the liability of the instrument to duty and any valuation report, prepared by a person privately practising as a valuer, on the market value of the immovable property shall for the purposes of this section be sufficient evidence for the Collector to make an assessment on the initial duty for which the instrument is chargeable.

For the purposes of this section, a person shall—

For the purposes of subsection (1), the Collector shall, prior to the market value of the immovable property being ascertained by a valuer employed by the Government for the purpose of subsection 36B(1A), ascertain the market value in advance for which the instrument referred to in that subsection is chargeable in accordance with the following formula:

A x 100

The Collector shall assess the duty chargeable on the instrument referred to in subsection (1) based on the market value as ascertained in advance under subsection (2).

54 Laws of Malaysia ACT 378

Additional duty

Where section 36AA applies and it appears to the Collector that based on the market value of the immovable property as ascertained by the valuer employed by the Government, the proper amount of duty chargeable on the instrument is higher than the advance duty paid, he may make an additional assessment on the person liable to pay such duty in the additional amount of duty chargeable.

As soon as may be after the additional assessment has been made under subsection (1) or (1A) the Collector shall cause a notice of additional assessment to be served on the person liable to pay duty in respect of such assessment.

A notice of additional assessment shall be in appropriate form and shall indicate in addition to any other material included therein—

The duty chargeable under an assessment shall be due and payable on the service of the notice of additional assessment to the person liable to pay the duty.

Stamp 55

Where initial duty due and payable under subsection (4)

has not been paid within thirty days after the service of the notice of additional assessment—

Where the proper amount of duty chargeable under subsection (1) exceeds the total sum of initial duty paid and bank guarantee furnished, by an amount of more than thirty per cent of that proper amount of duty chargeable, the difference between that amount and thirty per cent of the proper duty chargeable shall be increased by a sum equal to ten per cent of the amount of that difference.

Where advance duty due and payable under subsection (4)

has not been paid within thirty days after the service of the notice of additional assessment, so much of the duty remaining unpaid upon the expiration of that date shall without any further notice being served, be increased by a sum equal to ten per cent of the duty so unpaid.

The amount of duty unpaid and the increased amount under paragraph (5)(b), and increased sum under subsection (6) or (6A)

shall be recoverable as a debt due to the Government.

Where duty chargeable is equal or lower than advance duty paid and refund of advance duty paid in excess

Where it is proved to the satisfaction of the Collector that the person has paid the advance duty chargeable under section 36AA in excess of the proper amount of duty referred to in subsection (1), the excess shall be refunded by the Collector.

Assessment and additional assessment in certain cases

36CA. (1) The Collector, where it appears to him that no or no sufficient assessment has been made on an instrument chargeable to duty, may in that year or within five years after the date the duty is paid or would have been paid make an assessment or additional assessment, as the case may be, in respect of that instrument in the amount or additional amount of duty payable or in the additional amount of duty in which, according to the best of the Collector’s judgment, the assessment with respect to that instrument ought to have been made.

The Collector, where it appears to him that—

no valid notice of appeal against the assessment has been given under section 39 within the time specified by that section;

the assessment has been determined on appeal and there is no right of further appeal; or

a valid notice of appeal against the assessment has been given but the appellant dies before the hearing of the appeal by the High Court is commenced or completed and no personal representative of the estate of the deceased appellant applies to the High Court within two years after his death to proceed with or complete the hearing.

Nothing in subsection (1) shall prejudice the application of section 36B, 36CA or 50A.

the Collector has determined that the instrument is already fully stamped; or

the duty assessed by the Collector under section 36, 36A,

36AA, 36B or 36CA, as the case may be, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so assessed, has been paid, the Collector shall certify by indorsement on the instrument that the full duty or minimum duty, initial duty, advance duty or additional duty, as the case may be, stating the amount with which the instrument is chargeable has been paid.

58 Laws of Malaysia ACT 378

When such instrument is not chargeable with duty the Collector shall certify in manner aforesaid that such instrument is not so chargeable.

Where an instrument is chargeable with duty which exceeds ten ringgit and the duty is exempted, the person furnishing the return together with the instrument to the Collector in accordance with section 35A shall pay a fee of ten ringgit for the Collector to certify by indorsement on such instrument that the duty is exempted.

Any instrument upon which an indorsement has been made under this section shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and, if chargeable with duty, shall be receivable in evidence or otherwise and may be acted upon and registered as if it had been originally duly stamped.

Nothing in this section shall be deemed to require the

Collector to certify that the full duty with which an instrument is chargeable has been paid—

This section shall only apply to instrument where indorsement is required to be made on that instrument pursuant to any written law.

Every notice of objection shall state the grounds of objection to the Collector’s assessment or additional assessment and shall be made within thirty days after the date of the assessment or additional assessment or such further period as the Collector may allow in any particular case.

The person giving a notice of objection shall furnish further particulars and information in relation to the grounds of the objection if required to do so by the Collector in writing.

The Collector shall, on receipt of a notice of objection and such further particulars and information as he may require under subsection (3), review the assessment or additional assessment.

After the objection has been determined, the Collector shall notify the person in writing of his decision.

Where, on review, it appears to the Collector that the amount of duty originally or additionally assessed is excessive, he may cancel the original or additional assessment and make such other assessment in substitution of the original or additional assessment and shall serve on the person a notice of substituted assessment.

The making of an objection shall not relieve the person of liability to pay the duty as required by this Act.

Any reference in this Act to an assessment or additional assessment shall be construed as including a reference to a substituted assessment under subsection (6).

Where an appeal has been filed under subsection (1), the cause papers of the appeal shall be served on the Collector within the time stipulated for the filing of the appeal.

The Collector shall thereupon state and sign a case and deliver the same to the person by whom it is required, and the case may, within seven days thereafter or within such further time as the Court may allow, be set down by him for hearing.

Upon the hearing of the case the Court shall determine the question submitted, and, if the instrument in question is in the opinion of the Court chargeable with any duty, shall assess the duty with which it is chargeable.

Subject to subsection (4A), if it is decided by the Court that the assessment or additional assessment of the Collector is erroneous, any excess of duty which may have been paid in conformity with the erroneous assessment, together with any fine or penalty which may have been paid in consequence thereof, shall be ordered by the Court to be repaid to the appellant, with or without costs as the Court may determine.

Nothing in this section shall operate to compel the Collector to refund the excess amount of duty which may have been paid in conformity with the erroneous assessment, together with any fine or penalty which may have been paid unless the assessment has become final and conclusive in accordance with section 36D.

If the assessment or additional assessment of the Collector is confirmed the Court may make an order for payment to the Collector of the costs incurred by him in relation to the appeal.

Unless it is otherwise provided by rules of court, the rules of court for the time being in force in relation to appeals in civil matters from the High Court in its original jurisdiction to the Court of Appeal and the Federal Court shall apply with the necessary modifications to

Stamp 61

appeals under this section to the High Court, the Court of Appeal and the Federal Court respectively.

When a return together with such instrument is furnished to the

Collector, the Collector may require that the date of receipt thereof be verified by production of the envelope in which the same was received or of any accompanying letter, or, unless the date of the instrument

62 Laws of Malaysia ACT 378

shows that it must have been received within thirty days, by statutory declaration.

For the purposes of subsection (2), where the instrument is received by way of electronic transmission, the date of receipt thereof shall be verified by the production of a copy or print-out of the electronic transmission.

Nothing herein shall relieve any person from any penalty or proceeding to which he may be liable in relation to such cheque.

fifty ringgit or ten per centum of the amount of the deficient duty, whichever sum be the greater, if the instrument is stamped within three months after the time for stamping; or

one hundred ringgit or twenty per centum of the amount of the deficient duty, whichever sum be the greater, in any other case.

The Collector may, if he thinks fit, reduce or remit such penalty or the further amount payable under subsection 9(3).

64 Laws of Malaysia ACT 378

(Deleted by Act 851);

(Deleted by Act 851);

by affixing an official receipt to the instrument;

by attaching a stamp certificate to the instrument; or

by means of digital stamping, and shall be certified by the Collector.

The Collector and any employee of the Inland Revenue Board of Malaysia authorized by the Collector shall be deemed to be public officers authorized by the Minister under subsection 25(1) of the

Government Proceedings Act 1956 [Act 359] in respect of all proceedings under this section.

In a suit under this section, the production of a certificate signed by the Collector giving the name and address of the defendant and the amount of the duty or penalty due from him shall be sufficient evidence

Stamp 65

of the amount so due and authority for the court to give judgment for that amount.

any erroneous or under assessment of the duty or penalty by the Collector; or

the failure to assess that duty or penalty by the Collector, and the correct amount of duty or penalty due on the instrument shall be debts due to the Government and shall be recoverable by any of the ways and means in force for the time being for the recovery of debts due to the Government.

On receiving an application under subsection (1), the Collector shall inquire into the matter and shall give, by way of repayment of duty, such relief in respect of the alleged error or mistake as appears to him to be just and reasonable.

For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in Malaysia when such instrument was executed or first executed:

Provided that—

any such instrument shall, subject to all just exceptions, be admitted in evidence on payment of the duty and the penalty, if any, chargeable in respect thereof under section 47A;

nothing herein contained shall prevent the admission of any instrument in evidence in any criminal court;

Stamp 67

nothing herein contained shall prevent the admission of any instrument in evidence in any court when such instrument has been executed by or on behalf of the Government of

Malaysia or of any State or of the Government of any other country or where it bears the certificate of the Collector as provided by this Act.

No instrument executed outside Malaysia and relating to any property situate, or to any matter or thing done or to be done, in any part of Malaysia shall, except in the circumstances mentioned in subsection (1), be given in evidence or referred to or used in any manner in any proceedings in any Court or before any tribunal, board, commission, committee or similar body by whatever name called, established under any written law, unless it is duly stamped in accordance with the law in force in that part of Malaysia at the time when it was first executed relating to stamp duty which would have been chargeable on any such instrument if it had been executed in that part of Malaysia.

In subsection 2, “part of Malaysia” includes any territory which is part of Malaysia at the time of the proceedings, notwithstanding that it was not part of Malaysia when the instrument was executed.

In every other case in which an instrument is impounded under section 51, the person impounding the same shall send it forthwith to the Collector; and the Collector, on payment of the duty and penalty, if any, chargeable in respect thereof under section 47A, shall stamp such instrument and shall return it to the person who sent it to him, but

68 Laws of Malaysia ACT 378

if such duty and penalty, if any, be not paid, he shall retain such instrument.

Any penalty levied under this section may be reduced or remitted in the manner provided for by subsection 47A(2).

Where an agreement is evidenced by one or more letters between parties, which letters were not stamped before being used, it shall be lawful for the Collector, on being satisfied that the omission to have the letter or letters stamped did not arise from an intention to evade the payment of stamp duty, to affix the proper stamp on the letter or any one of the letters evidencing the contract on payment of the duty.

(Deleted by Act 831)

Where a letter is so stamped all the letters forming together the agreement may be used in evidence to prove the agreement stated or partly stated in the letter so stamped.

the stamp on any paper inadvertently and undesignedly spoiled, obliterated or by any means rendered unfit for the purpose intended, before the paper bears the signature of any person or any instrument written thereon is executed by any party;

(Deleted by Act 851);

(Deleted by Act 661);

the stamp on any promissory note signed by or on behalf of the maker which has not been made use of in any manner whatever or delivered out of his hands;

the stamp on any promissory note which from any omission or error has been spoiled or rendered useless, although the same, being a promissory note, may have been delivered to the payee, provided that another completed and duly stamped promissory note, is produced identical in every particular except in correction of the error or omission, with the spoiled note;

the stamp used for any of the following instruments:

an instrument executed by any party thereto, but afterwards found to be absolutely void from the beginning;

70 Laws of Malaysia ACT 378

an instrument executed by any party thereto, which is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped, or which becomes useless in consequence of the transaction intended to be thereby effected being effected by some other instrument duly stamped;

that the application for relief is made within twenty-four months after the stamp has been spoiled or become useless or in the case of an executed instrument after the date of the instrument, or, if it is not dated, within twenty-four months after the execution thereof by the person whom it was first or alone executed or within such further time as the Collector may prescribe in the case of any instrument sent abroad for execution or when from unavoidable circumstances any instrument for which

Stamp 71

another has been substituted cannot be produced within the said period;

(aa) that the application for relief is made within two months from the date the instrument of transfer is rejected by the

Registrar of Titles; or

that in the case of an executed instrument no legal proceeding has been commenced in which the instrument could or would have been given or offered in evidence, and that the instrument is given up to be cancelled.

executes any instrument in which all the facts and circumstances are not truly and fully set forth as required by section 5; or

being employed or concerned in or about the preparation of any instrument neglects or omits fully and truly to set forth therein all the said facts and circumstances;

shall be liable to a fine *of not less than two thousand five hundred ringgit and not exceeding fifty thousand ringgit.

with intent to evade the payment of duty, draws, makes, executes or signs, otherwise than as a witness, any instrument whatsoever chargeable with duty without the same being duly stamped;

*NOTE—Previously “not exceeding two thousand five hundred ringgit”–see section 25 Measures for the

Collection, Administration and Enforcement of Tax Act 2025 [Act 875].

Stamp 73

having drawn, made, executed or signed, otherwise than as a witness, any instrument whatsoever chargeable with duty without the same being duly stamped, fails, without lawful excuse, to procure the due stamping thereof within the time within which such instrument may be stamped without penalty under this Act; or

issues, endorses, transfers or presents for acceptance or payment or accepts, pays or receives payment of or in any manner negotiates any cheque or promissory note without the same being duly stamped;

shall be liable to a fine *of not less than one thousand ringgit and not exceeding ten thousand ringgit.

When any penalty has been paid in respect of any instrument under section 47A, 52 or 53, the amount of such penalty shall be allowed in reduction of the fine, if any, subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.

Subsection (1) shall not apply in respect of any instrument which has been indorsed as “stamped in due time” under section 40.

Paragraph (1)(b) shall not apply to the person mentioned in the second column hereunder in respect of the execution or signature of such of the instruments appearing in the First Schedule as are specified in the corresponding line of the first column—

Title of instrument as described in Schedule A

Persons not liable to penalty

Conveyance, assignment, transfer or absolute bill of sale

Vendor, assignor or transferor

Lease or agreement for lease

The lessor

Charge, agreement for a charge, bond, debenture, covenant and bill of sale by way of security

The chargee or obligee in the case of a transfer or reconveyance the transferor, assignor or disposer or the person giving up the security

*NOTE—Previously “not exceeding one thousand five hundred ringgit”–see section 26 of Measures for the Collection, Administration and Enforcement of Tax Act 2025 [Act 875].

74 Laws of Malaysia ACT 378

For the purposes of this section, a cheque issued in pursuance of section 9 shall be deemed to be duly stamped.

draws, makes or issues any promissory note bearing a date subsequent to that on which such note is actually drawn or made; or

knowing that such note has been so postdated, endorses, transfers, presents for acceptance or payment or accepts, pays or receives payment of such note or in any manner negotiates the same, shall be liable to a fine not exceeding two thousand five hundred ringgit.

receives, or takes credit for any premium or consideration for any insurance other than a sea insurance, and does not within one month after receiving or taking credit for the premium or consideration make out and execute a duly stamped policy of insurance; or

makes, executes, or delivers out, or pays or allows in account, or agrees to pay or allow in account, any money upon or in respect of any policy other than a policy of sea insurance which is not duly stamped, shall be liable to a fine not exceeding one thousand ringgit.

Provided that on application and for good cause shown by any person the Minister of Finance may extend the period mentioned in paragraph (a)

of this section to a period not exceeding three months in favour of such person.

becomes an assurer upon any sea insurance or enters into any contract for sea insurance, or directly or indirectly receives or contracts or takes credit in account for any premium or consideration for any sea insurance, or knowingly takes upon himself any risk, or renders himself liable to pay, or pays any sum of money upon any loss, peril or contingency relative to any sea insurance, unless the insurance is expressed in a policy of sea insurance duly stamped;

makes or effects or knowingly procures to be made or effected any sea insurance, or directly or indirectly gives or pays, or renders himself liable to pay, any premium or consideration for any sea insurance, or enters into any contract for sea insurance unless the insurance is expressed in a policy of sea insurance duly stamped; or

76 Laws of Malaysia ACT 378

is concerned in any fraudulent contrivance or device, or is guilty of any wilful act, neglect or omission with intent to evade the duties payable on policies of sea insurance or whereby the duties may be evaded, shall for every such offence be liable to a fine not exceeding one thousand ringgit.

Broker or agent

Every broker, agent or other person negotiating or transacting any sea insurance contrary to the true intent and meaning of this Act, or executing any policy of sea insurance upon paper not duly stamped, shall for every such offence be liable to a fine not exceeding one thousand ringgit and shall not have any legal claim to any charge for brokerage, commission or agency or for any money expended or paid by him with reference to the insurance, and any money paid to him in respect of any such charge shall be deemed to be paid without consideration, and shall remain the property of his employer.

Penalty for making or issuing pretended copies

If any person makes or issues, or causes to be made or issued, any document purporting to be a copy of a policy of sea insurance and there is not at the time of the making or issue in existence a policy duly stamped whereof the said document is a copy, he shall for such offence, in addition to any other fine or penalty to which he is liable, be liable to a fine not exceeding one thousand ringgit.

If any person whose office it is to enrol, register, or enter in or upon any rolls, books or records any instrument chargeable with duty, enrols, registers or enters any such instrument not being duly stamped, he shall be liable to a fine not exceeding one thousand five hundred ringgit.

sells or offers for sale a stamp certificate;

fraudulently attaches a stamp certificate to an instrument other than the instrument for which the stamp certificate was issued;

fraudulently detaches a stamp certificate or fraudulently causes a stamp certificate to be detached from the instrument;

counterfeits, or knowingly performs any part of the process of counterfeiting, any stamp certificate issued by the

Collector;

sells or offers for sale any certificate which he knows or ought reasonably to know to be a counterfeit of any stamp certificate issued by the Collector;

78 Laws of Malaysia ACT 378

has in his possession any certificate which he knows to be a counterfeit of any stamp certificate, intending to use or dispose of it as a genuine stamp certificate in order that it may be used as a genuine stamp certificate; or

uses as a genuine stamp certificate knowing it to be a counterfeit of any stamp certificate, shall be guilty of an offence and shall be liable on conviction to a fine

*of not less than two thousand five hundred ringgit and not exceeding fifty thousand ringgit.

Penalty for failure to keep record and other offences

fails to keep and retain the books, records and documents as required under subsection 9(7);

fails to notify the Collector as required under subsection 15(6A);

fails to notify the Collector as required under subsection 15A(6); or

fails to keep the instrument and all relevant documents as required under section 35B, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten thousand ringgit.

Where a person has been convicted of an offence under subsection (1), the court may make a further order that the person shall comply with the relevant provision of this Act under which the offence has been committed within thirty days, or such other period as the court considers appropriate, from the date the order is made.

Where a person fails to furnish a return with the instrument which is executed and chargeable with duty in accordance with section 35A and no prosecution under subsection (1) has been instituted in relation to such failure, the Collector may require that person to pay a penalty of not less than two hundred ringgit and not more than two thousand ringgit.

The Collector may, if he thinks fit, reduce or remit the penalty referred to in subsection (3).

makes an incorrect return by omitting or understating any duty of which he is required by this Act to make a return; or

gives any incorrect information in relation to any matter affecting his own chargeability to duty, unless he satisfies the court that the incorrect return or incorrect information was made or given in good faith, such person shall be guilty of an offence and shall be liable on conviction to a fine of not less than one thousand ringgit and not more than ten thousand ringgit and shall pay a special penalty equal to the amount of duty which has been undercharged in consequence of the incorrect return or incorrect information or which would have been undercharged if the return or information had been accepted as correct.

Where a person—

80 Laws of Malaysia ACT 378

The Collector may, if he thinks fit, reduce or remit the penalty referred to in subsection (2).

The certificate referred to in subsection (1) may be issued to any

Commissioner of Police or Director of Immigration through an electronic medium or by way of electronic transmission.

Subject to any order issued or made under any written law relating to banishment or immigration, any Commissioner of Police or

Director of Immigration who receives a request under subsection (1)

in respect of any person shall take or cause to be taken all such measures as may be necessary to give effect to it.

The Collector shall cause notice of the issue of the certificate under subsection (1) to be served personally or by registered post on the person to whom the certificate relates:

Provided that the non-receipt of the notice by that person shall not invalidate anything done under this section.

Where a person in respect of whom a certificate has been issued under subsection (1)—

No legal proceedings shall be instituted or maintained against the Government, a State Government, a police officer or any other public officer in respect of anything lawfully done under subsection 74B(2).

82 Laws of Malaysia ACT 378

In this section—

“Commissioner of Police” includes a Chief Police Officer;

“Director of Immigration” means the Director of Immigration in

*Peninsular Malaysia, Sabah or Sarawak;

“immigration officer” means a public officer having official duties in connection with the control of immigration into Malaysia or any part of Malaysia.

A police officer or immigration officer may arrest without warrant any person whom he reasonably suspects to be committing or is about to commit an offence under this section.

In this section, “immigration officer” has the same meaning as in section 74A.

The Collector may compound any such offence.

*NOTE—All reference to “West Malaysia” shall be construed as reference to “Peninsular Malaysia”–see the Interpretation (Amendment) Act 1997 [Act A996], subsection 5(2).

Stamp 83

The amount of any such composition shall be a debt due to the

Government and shall be recoverable by any of the ways and means in force for the time being for the recovery of debts due to the Government.

The Collector may revoke, revise or amend the whole or any part of any guidelines issued under this section.

84 Laws of Malaysia ACT 378

to obtain an assessment of stamp duty and any penalty, if any, on an instrument;

to pay stamp duty and any penalty, if any, on an instrument by electronic funds transfer or otherwise, in accordance with the assessment;

to obtain a stamp certificate in relation to the assessment;

to obtain an indorsement of stamp duty in a case where section 37 applies;

to obtain a review of an assessment in a case where section 38A applies; or

to obtain a refund of duty paid in a case where section 57,

58 or 80B, or subsection 21(7), subsection 39(4), 50B(2)

or subsection 80(3) applies.

In this section, “registered person” means any person who applies to the Collector to register to use the electronic medium.

All conditions and specifications relating to the use of electronic medium shall be determined by the Collector.

Stamp 85

A registered person must, on receipt of a stamp certificate issued for the instrument by the Collector, immediately attach the stamp certificate to the instrument.

The Minister of Finance may in any particular case—

The Minister of Finance may by order published in the Gazette reduce or remit, in the whole or any part of Malaysia, the duties with which any particular class of instruments, or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any members of such class, are chargeable.

Any order made under subsection (1) or (2) or any exemption, reduction or remission made under subsection (1A) may be made to operate retrospectively to any date, whether before or after the commencement of this Act, and may relate to duties chargeable under any written law repealed by this Act as well as to duties chargeable under this Act, and, in the case of any such exemption, remission or reduction, any moneys paid in respect thereof shall be refunded.

The money of the Fund referred to in subsection (1), shall be applied for the making of a refund of any duty or any other payment required to be made by the Collector under this Act.

Section 14A of the Financial Procedure Act 1957 shall not apply to any refund of any duty or any other payment required to be made under this Act.

Where the Collector is authorized or required by this Act to make any refund of any duty or any other payment required under this

Act, he shall certify the amount of the sum to be refunded or paid and cause the refund or payment to be made forthwith.

duty which is due and payable by the person under this Act;

or

tax which is due and payable (including any amount of instalments which are due and payable) by the person under the Income Tax Act 1967, the Petroleum (Income Tax) Act 1967 [Act 543], the Real Property Gains Tax Act 1976

[Act 169] or the Labuan Business Activity Tax Act 1990

[Act 445].

Where amount of excess in respect of a person is ascertained in accordance with subsection 111(4A) of the Income Tax Act 1967, subsection 50(4) of the Petroleum (Income Tax) Act 1967, subsection 24(7A) of the Real Property Gains Tax Act 1976 or

88 Laws of Malaysia ACT 378

subsection 12(2) of the Labuan Business Activity Tax Act 1990, the excess shall be applied for the payment of duty which is due and payable by the person under this Act.

(Deleted by Act 851);

(aa) to prescribe the stamp certificate and official receipt to be issued under this Act for the payment of stamp duty, to provide for matters relating to issue and validity of the stamp certificate and official receipt;

(ab) to prescribe the means of digital stamping to be used under this Act for the payment of stamp duty, to provide for matters relating to the issuance and validity of the digital stamping;

(Deleted by Act 851);

generally for carrying out the purposes of this Act.

Repeal

for the immediate purpose of being filed or used in any court or before any Judge or officer of any court;

under section 8 of the *Post Office Act 1947;

*NOTE—The Post Office Act 1947 [Act 211] has since been repealed by the Postal Services Act 1991

[Act 465]—see subsection 50(1) of Act 465 which then has been repealed by the Postal Services Act 2012

[Act 741]—see subsection 110(1) of Act 741.

90 Laws of Malaysia ACT 378

Item

Description of Instrument

Proper Stamp Duty

for or relating to the sale of any goods, wares or merchandise other than a hire-purchase agreement;

for service or personal employment where the wages do not exceed

RM3,000 per month, and any agreement between the master and mariners of any vessel or boat for wages;

the matter whereof is of a value of less than RM300;

for the reference of any matter to arbitration;

for the payment of interest on money deposited in any bank or with any banker;

Stamp 91

Item

Description of Instrument

Proper Stamp Duty

for the repurchase of negotiable certificate of deposit whose issue has been authorized by Bank Negara

Malaysia.

Note—An agreement for or relating to the supply of goods on hire, whereby the goods in consideration of periodical payments will or may become the property of the person to whom they are supplied, shall be charged with stamp duty as an agreement, or, if under seal, as a deed

By way of security or of any security

See Charge

Upon a sale or otherwise

See Conveyance

Of policy of life insurance—

92 Laws of Malaysia ACT 378

Item

Description of Instrument

Proper Stamp Duty

by way of gift or trust, where the sum insured—

does not exceed

RM100,000.00

exceeds

RM100,000.00

but does not exceed

RM500,000.00

RM100.00

exceeds

RM500,000.00

but does not exceed

RM1,000,000.00

RM500.00